South Korea’s Supreme Court will decide whether the supervision of the local encrypted currency is unconstitutional

nBankruptcy: A South Korean law firm filed a constitutional complaint with South Korea’s government over its cryptocurrency regulation in December last year on the grounds of infringing on people’s property rights, and the case has now been submitted to the Supreme Court of South Korea. The court will consider the reasons given by law firms to judge whether the government’s regulatory actions are unconstitutional or not. All the encrypted currency of the South Korean government may be revoked if unconstitutional judgments are taken against them.n
nTranslation: Inan
The lawsuit was filed with the Supreme Courtn
In late December last year, a South Korean law firm filed a constitutional complaint against the South Korean government over the regulation of cryptocurrencies, which has now been submitted to the Supreme Court by the South Korean Constitutional Court.n
According to counsel Jeong Hee-chan, “regulating transactions by administrative guidance without any legal basis is a violation of property rights.” The “Korea Times” cites the remarks of Jeong’s law firm:n
n”This regulation by the government devaluates the virtual currency by increasing the difficulty of the transaction … Therefore, it is a violation of people’s property rights through government illegal measures.”n
nJeong clarified:n
n”We agree that regulation is necessary, but regulation should be implemented after the relevant laws have been enacted, and our petition also requires the government to respect the people’s property rights and to supervise the implementation of the social consensus.”n
Real-name system is not fair?n
The South Korean government has ordered major banks to implement a real-name system to distribute encrypted currency exchange accounts as of January 30, as part of their regulatory content.n
Regulators said that all virtual accounts previously used by cryptocurrencies traders must be converted into real-name accounts so that funds can be deposited for trading. However, only a week later, only 8.21% of the virtual accounts in South Korea’s top four cryptocurrencies were converted into real-name accounts, and 1.6 million accounts failed to be converted.n
In addition, the bank provides account transfer services only for the four exchanges Upbit, Bithumb, Coinone and Korbit, which are not yet available for small exchanges. Reported:n
n”The key issue is the unfairness of the virtual currency real name system … The government should clarify the basis for the implementation of the virtual currency real name system. Only the laws enacted by the parliament can limit the basic rights of the people as prescribed by the Constitution.”n
nTop Star News, a South Korean media, said: “The government insists that the real name system is legal, based on the Banking Law and the Financial Information Law.”n
n”If the court makes a constitutional verdict on it, then all the government’s existing regulatory measures for cryptocurrencies could be lifted.”n
nAccording to the report, the case was filed with the Constitutional Court on December 20 and should be closed within 180 days, so the case is expected to yield results by the end of June.n

Leave a Reply

Your email address will not be published. Required fields are marked *